Wang Is Riding High on Xerox Merger Talk
Wall Street rumors that the Xerox Corp may seek to merge with Wang in an attempt to ward off a hostile takeover attempt has caused Wang stock prices to increase dramatically.
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Wilke, John
Full text: [Boston Globe] May 5, 1989
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NCNB officials don’t know cause of stock action
Meanwhile, Citizens & Southern Corp. stock rose 50 cents to $30 per share. NCNB last week gave up its pursuit of the Georgia-based banking company, which vigorously opposed NCNB’s overtures. NCNB’s higher stock price gives it more flexibility to offer a higher price for C&S if it made a second bid, some investors have speculated.
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Full text: [Austin American Statesman] May 5, 1989
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Thrifts & mortgages: regulators put Imperial on hold
Imperial Corporation of America (San Diego, CA) has agreed not to expand assets and instead to seek a merger in 1989, and the troubled thrift has received formal orders from the government to increase capital and loan loss reserves and to tighten credit evaluations. The company’s capital ratio is 3.81% and it lost $15.6 million in the fourth quarter of 1988. Its junk bond portfolio and Yugoslavian auto sales operations have aroused controversy. Stock prices are depressed to about a quarter of book value.
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Scally, Robert
Full text: [American Banker] May 5, 1989
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BankAmerica Signals Revival with 2 Deals
BankAmerica Corp. (San Francisco) will buy First Development Corp. (Reno, NV) and American Savings Bank (Tacoma, WA), two rather small concerns. The acquisitions signal renewed vitality at BankAmerica. After losing $1.8 billion from 1985 to 1987, a trimmed down operation earned $726 million in 1988. Dividends have been reinstated and stock prices have quadrupled from their 1987 low. The bank’s acquisition strategy focuses on S&Ls in Oregon and Arizona to give the company control over the West. However, many targets in the region have numerous organizations seeking to take them over.
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Carson, Teresa
Full text: [American Banker] May 5, 1989
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UPDATE ON BUSINESS
In July, 1987, SAC warned its clients that the market was “levitating,” which is SAC’s way of saying stock prices were at exaggerated heights. SAC’s reasoning was that 40 per cent of the TSE 300 was in what it calls a “price insolvent” condition. In other words, the corporate fundamentals that SAC flags could not support many of the stock prices in the market.
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Full text: [The Plain Dealer] May 6, 1989
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ON STOCKS Solvency Analysis adds twist to a company’s profit picture
In July, 1987, SAC warned its clients that the market was “levitating,” which is SAC’s way of saying stock prices were at exaggerated heights. SAC’s reasoning was that 40 per cent of the TSE 300 was in what it calls a “price insolvent” condition. In other words, the corporate fundamentals that SAC flags could not support many of the stock prices in the market.
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LEONARD ZEHR
Full text: [The Globe and Mail] May 6, 1989
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DCA Stock Price Jumps on Rumors that Motorola Is Considering a Bid
The stock of Alpharetta GA-based Digital Communications Associates Inc has risen again as persistent takeover rumors continue. The latest Wall Street buzz is that Motorola Inc will offer a $30-a-share bid.
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Jones, Robert Snowdon
Full text: [The Atlanta Journal the Atlanta Constitution] May 6, 1989
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State rejects HSN’s claim against GTE
Following a 90-minute morning session in Tallahassee, the five-member panel voted that GTE met all state standards in designing, installing and operating an elaborate phone network for the St. Petersburg-based company. Home Shopping is suing GTE in Pinellas Circuit Court in a trial expected to begin June 19. The $1.5-billion case promises to have important implications for the relationships between businesses and their telephone companies. Home Shopping claims it missed calls and orders of $1-million a day in early 1987 because the phones didn’t work. Drops in stock price and market share followed. GTE has countersued, saying Home Shopping’s problem was poor management and planning, not phones.
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ALAN GOLDSTEIN
Full text: [St. Petersburg Times] May 6, 1989
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Investors Sue Penny Broker
LEAD: A group of New England investors has filed a class-action lawsuit seeking hundreds of thousands of dollars from Blinder, Robinson & Company, a Denver penny-stock brokerage. A lawyer for Blinder, Robinson, Alan Jacobson, said Thursday, ”Our impression is there is no factual or legal basis for this lawsuit.”
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AP
Full text: [New York Times] May 6, 1989
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Late stock selloff flattens rally
Stock prices did a turnabout Friday, running up a big gain for most of the day before traders got cold feet, as the rally fizzled in a wave of computerized program trading. But the broader market ended higher. Advancing issues led decliners 4 to 3 on the New York Stock Exchange, where volume was a solid 180.81 million shares, up from 153.1 million Thursday. Stocks took off from the opening bell, gaining as much as 30 points on the Dow after the government said the nation’s jobless rate rose to 5.3 percent last month from March’s 15-year low of 5 percent.
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Chicago Tribune wires.
Full text: [Chicago Tribune (pre-1997 Fulltext)] May 6, 1989
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Looking to Claim New Turf
Atlanta-based Rollins Inc is looking for a new business to add to its portfolio in order to accelerate sales and profits and push its stock price up. Analysts are calling Rollins’ stock too pricey, but company officials disagree, saying they have no long-term debt and a growing pile of cash.
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Luke, Robert
Full text: [The Atlanta Journal the Atlanta Constitution] May 7, 1989
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Success in market requires a rating system
When the ratio rises to .7 or above, meaning there are about seven put buyers to every 10 buyers of calls, it means that investors are pessimistic, and technical analysts sometimes see this as a buy sign. When the ratio drops to about .4, the technicians see this as a “sell signal.” This is because studies have shown that options buyers tend to follow rather than lead a trend, so that when the ratio gets out of line in one direction or another, it tells technical analysts that the trend is about over. When the ratio is high, or the trend line is going up, that’s good. For example, if the ratio, expressed as a number, is 99, that means that the stock is outperforming 99 percent of the stocks in the market. The line on the chart won’t necessarily show 99, however, but will simply express the trend based on the ratio of the stock’s price to the market average multiplied by some constant factor that will produce a line somewhere below the actual stock price. Is it possible to be an armchair technician? To a large extent yes, [Edward Nicoski] said. “All you need is a plastic ruler, a pen and chartbook,” he said. “The back pages of Barron’s provide a wide variety of the kinds of statistics technical analysts use – investor sentiment, volume and breadth measurements. There are also a variety of softwear packages that produce technical indicators.”
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Anthony Carideo
Staff Writer
Full text: [Star Tribune] May 7, 1989
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MBIA Rebounds From ‘Black Monday’ With a Vengeance
WHITE PLAINS-The Wall Street crash of 1987 is just a memory for MBIA Inc. of White Plains. The municipal bond insurance company, which saw its stock price plummet to record lows after “Black Monday,” has regained its pre-crash shareholder value and then some. The holding company for Municipal Bond Assurance Corp., MBIA has seen its stock price rise approximately 32 percent since the beginning of the year, completely erasing the company’s Black Monday losses. Company officials believe the firm will continue on its present course of steady growth. Analysts who follow MBIA agree, saying the stock price is at a level equivalent to the value of the company and will not go up much further in the near term. (excerpt)
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Jordan, John
Full text: [Westchester County Business Journal] May 08, 1989
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Company Stalled in Quest to Make New-Style Engine
Back in the mid-1970s, two Maryland scientists made a startling announcement: They had found a way to modify automobile engines that dramatically reduced pollution, increased engine power and boosted fuel efficiency. One of the scientists, Andrew Pouring, formed a company in 1980-Sonex Research Corp.-to pursue commercial applications of the new technology. The firm went public in 1985 at $5 a share. Supporters claimed Sonex’s technology would revolutionize the auto industry, and have the same magnitude of impact for automobiles that the transistor had in the electronics field. The stock rocketed to the mid-20s and split. (excerpt)
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Menninger, Bonar
Full text: [Washington Business Journal] May 08, 1989
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Recession Ahead? Stock Market May Not Tell
It’s a popular notion on Wall Street that the discounting ability of the stock market is good enough to forecast, at least by a few months, the onset of a recession. And, indeed, charts tracking stock prices before the onset of recessions do seem to indicate some predictive power. Of course, not everyone endorses the theory. A.C. Moore, director of research at Argus Research, points out that while the stock market often has declined in advance of a recession, it hasn’t always. For example, stock prices rose even after the 1980 recession began. And, he says, the stock market didn’t give any clue to the severity of the 1981-82 recession. In any event, it’s the ability of the stock market to call the next recession that’s in question. For one thing, market analysts aren’t sure how to treat the October 1987 stock market crash. Although the average lead time for stock prices to decline in anticipation of a recession is about 10 months, the range is from almost nothing to two years.
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By Douglas R. Sease
Full text: [Wall Street Journal] May 8, 1989
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Small stocks gain strength;Still cheap, they outrun blue chips
As [Peter Lynch] puts it: “One or two of these in a lifetime can make you very happy.” TEXT OF GRAPHIC Small stocks – as measured by NASDAQ over-the-counter composite index – have underperformed for three of the past five years. But they may be regaining their muscle. NASDAQ stocks are up 12.9% so far this year, vs. a 10.8% rise for the S&P 500 stocks. COMPLETE TEXT OF GRAPHIC NOT AVAILABLE Source:USA TODAY research In the ’80s, though, small stocks fell out of favor. Perhaps because blue chips afforded such healthy – and less risky – gains during the Great Bull Market from August 1982 to August 1987, small stocks underperformed in four of those five years. Small-stock price-earnings ratios fell to 25-year lows relative to blue-chip P-Es. The key small-stock index, the National Association of Securities Dealers’ OTC composite (NASDAQ), gained only 185% in that period, vs. 250% for the Dow. Now, small stocks have climbed out of the doghouse and back into their traditional catbird seat. They outpaced the broad market last year and are still ahead. So far this year, the NASDAQ composite has risen 12.9%, vs. 9.8% for the Dow and 10.8% for the Standard & Poor’s 500 index. During the Dow’s six-session sell-off – its longest losing streak this year – the NASDAQ gained 4.56 points to close Friday at 430.74.
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David Craig
Full text: [USA TODAY (pre-1997 Fulltext)] May 8, 1989
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Going Public: Executives of Once-Private Firms Have No Regrets
[Robert E. Cook] acknowledges that it might be easier to run a company without having to worry about quarterly earnings. If an executive of a public company sees an opportunity to make a long-range investment that will have a serious impact on company’s profits-and on its stock price-the executive is not likely to make that investment, Cook said. But an executive in a private company could do that without criticism, he said. Another supporter of the public company concept is W. Walker Lewis, chairman of Strategic Planning Associates (SPA) of Washington, a management consulting firm. SPA was a 14-year-old business when it went public in late 1986, with 22 individuals selling 400,000 shares worth about $4.8 million. As for life in the fishbowl, Lewis thinks it is “a very small price to pay” for the right to be a public company. When SPA’s profits suffered last fall and the stock dropped to $8.25 from $14.75 (down 44.1 percent), “it was no fun … to have it happen in a public setting,” Lewis said. But he added, philosophically, it “would not have been fun in a private setting, either.”
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Stan Hinden
Full text: [The Washington Post (pre-1997 Fulltext)] May 8, 1989
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Shaw Moves to Acquire Stake in Business Journal’s Parent
Charlotte-based Shaw Publishing Co. intends to buy a major equity position in American City Business Journals, parent company of The Business Journal of Charlotte. A spokesman for Kansas City, Mo.-based American City did not know whether Shaw would look to relocate headquarters to Charlotte-a logical move. “That hasn’t been addressed. That’s for the board and (Ray) Shaw to comment on sometime in the future.” Shaw Publishing head Ray Shaw, 55, will become chairman of the board and chief executive of American City upon completion of the sale, expected in early June. Shaw recently retired as president of Dow Jones & Co., publisher of The Wall Street Journal. (excerpt)
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Cranford, Steve
Full text: [The Business Journal] May 08, 1989
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Shareholders Hit Bottom in First Farwest’s Slide
Investors in Portland’s First Farwest Corp., which recently initiated bankruptcy proceedings, needn’t strain their eyes on the small print of the financial pages. As a recent filing with the Securities and Exchange Commission states, “There is no anticipated recovery available to the stockholders” of First Farwest, which was listed on the NASDAQ system before trading of the stock ceased at $5.50 per share earlier this year. First Farwest’s longtime chairman and former chief executive officer Forrest Simmons takes the biggest hit from the demise of First Farwest stock, losing more than $2.5 million in the price tumble from $5.50 per share to zero. The New York investment firm Tweedy, Browne Co. L.P. was the second-place loser, with a $750,000 hit. (excerpt)
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Robbins, Dawn
Full text: [The Business Journal] May 08, 1989
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Risky Business: Firm Counting on New Drug
CytRx Corp, a Norcross GA-based pharmaceutical company, plans to raise its stock price by marketing a new product ReothRx. ReothRx is reportedly successful in treating sickle cell anemia.
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McCosh, John
Full text: [The Atlanta Constitution] May 8, 1989
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